Recently, on my FXCM live account I have been experimenting with hedging. After studying this a while, it occured to me that this may actually be a better approach than a traditional stop.
Trading XAU/USD and usdollar CFDs, I have found it more profitable to use a longer time frame. Currently, I trade the 1 hour chart.
Trouble with this is that there is a lot of “noise” in 1 hour that can knock you out of the trade if you use a traditional stop. There is a real opportunity cost…